Question
Currency Chest is the property of ...............................
Answer: Option C
Currency Chest is a repository of the Indian banknotes and coins maintained by the Reserve Bank of India (RBI) at certain centres for the purpose of augmenting the resources of the banks, particularly in times of need or in times of emergency. Generally, big public sector banks and some cooperative banks have currency chests.
Detailed Explanation
Definition of Currency Chest:
Currency Chest is a storage facility which acts as a repository of Indian banknotes and coins. It is maintained by the Reserve Bank of India (RBI) and is used to augment the resources of the banks, particularly in times of need or in times of emergency.
Objectives of Currency Chest:
1. To ensure the availability of adequate currency notes and coins to meet the needs of the general public and banks.
2. To maintain the quality of Indian banknotes and coins.
3. To ensure that banknotes and coins are properly distributed to all bank branches in the district.
4. To facilitate the replacement of unfit banknotes and coins with new ones.
5. To provide a safe and secure storage facility for the banknotes and coins held by the banks.
Role of Currency Chest:
1. The currency chest plays a crucial role in supplying sufficient currency notes and coins to the public and to the banks.
2. It also acts as an intermediary between the RBI and the banks, providing the RBI with information on the currency requirements of the banks and facilitating the distribution of currency notes and coins to the banks.
3. It also facilitates the exchange of old and unfit notes with new ones.
4. The currency chest also acts as a clearing house for the exchange of currency notes and coins between the banks.
Ownership of Currency Chest:
The ownership of the currency chest lies with the RBI. The currency chests are operated by the banks on behalf of the RBI and are monitored and supervised by the RBI. The RBI is responsible for the security and safety of the banknotes and coins stored in the currency chests.
Conclusion:
Therefore, it can be concluded that the Currency Chest is the property of the Reserve Bank of India (RBI).
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Currency Chest is a repository of the Indian banknotes and coins maintained by the Reserve Bank of India (RBI) at certain centres for the purpose of augmenting the resources of the banks, particularly in times of need or in times of emergency. Generally, big public sector banks and some cooperative banks have currency chests.
Detailed Explanation
Definition of Currency Chest:
Currency Chest is a storage facility which acts as a repository of Indian banknotes and coins. It is maintained by the Reserve Bank of India (RBI) and is used to augment the resources of the banks, particularly in times of need or in times of emergency.
Objectives of Currency Chest:
1. To ensure the availability of adequate currency notes and coins to meet the needs of the general public and banks.
2. To maintain the quality of Indian banknotes and coins.
3. To ensure that banknotes and coins are properly distributed to all bank branches in the district.
4. To facilitate the replacement of unfit banknotes and coins with new ones.
5. To provide a safe and secure storage facility for the banknotes and coins held by the banks.
Role of Currency Chest:
1. The currency chest plays a crucial role in supplying sufficient currency notes and coins to the public and to the banks.
2. It also acts as an intermediary between the RBI and the banks, providing the RBI with information on the currency requirements of the banks and facilitating the distribution of currency notes and coins to the banks.
3. It also facilitates the exchange of old and unfit notes with new ones.
4. The currency chest also acts as a clearing house for the exchange of currency notes and coins between the banks.
Ownership of Currency Chest:
The ownership of the currency chest lies with the RBI. The currency chests are operated by the banks on behalf of the RBI and are monitored and supervised by the RBI. The RBI is responsible for the security and safety of the banknotes and coins stored in the currency chests.
Conclusion:
Therefore, it can be concluded that the Currency Chest is the property of the Reserve Bank of India (RBI).
Was this answer helpful ?
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